ICB plans to transfer unclaimed dividends for FY20
ICB’s unclaimed dividends amounted to Tk35.23 crore as of FY22
Of the total Tk35.23 crore in unclaimed dividends as of FY22, the Investment Corporation of Bangladesh (ICB) finally plans to transfer the unclaimed dividends for FY20, as they have remained undistributed for more than three years.
The state-owned investment bank published a list of cash and bonus share shareholders for FY20, which is eligible to transfer to the Capital Market Stabilisation Fund (CMSF) to comply with the rules of the Bangladesh Securities and Exchange Commission (BSEC).
Earlier, in January this year, the BSEC directed to impose a 2% penalty on the amount of unclaimed dividends at a compound rate, making it effective from March this year.
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An unclaimed dividend is a dividend that is due to be paid to shareholders but has not yet been distributed.
According to rules, if cash dividends and bonus shares remain undistributed or unclaimed for more than three years from the date of dividend declaration or approval or the record date, such undistributed cash dividends and bonus shares must be transferred to the CMSF.
Officials at the ICB said this [unclaimed dividend] sometimes occurs when bank account information is incorrect or when dividend warrants are returned to companies due to incomplete or incorrect addresses of the shareholders.
According to the list published on its website, there are 533 shareholders with unclaimed cash dividends totaling Tk3.77 lakh for FY20. Additionally, there are 256 shareholders with unclaimed bonus shares amounting to 28,149 shares.
The ICB has set for a deadline on 18 August, by which shareholders are requested to provide valid proof of unclaimed dividends – cash and bonus – for FY20 either directly or by applying to its secretariat department.
If no valid claims are received within the stipulated time, necessary steps will be taken to transfer the undistributed and unclaimed cash dividends and bonus shares to the CMSF, said the ICB in notice to the shareholders.
According to its annual report for FY23, the total amount of unclaimed dividends accumulated over the previous six years was Tk35.23 crore as of FY22.
Of this amount, the highest unclaimed or undistributed dividends were Tk24.02 crore from FY21, followed by Tk10.90 crore for FY22.
On Sunday, the ICB's share price closed at Tk55.20 each at the Dhaka Stock Exchange (DSE).
According to the DSE, the ICB made a profit of Tk56 crore in FY20 and paid a 5% cash and 5% stock dividend to its shareholders.
